<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg" alt="" class="wp-image-425362" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/SGV2N5MGRBP33CZ56U2JGAY3RE-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger</figcaption></figure>



June 9 (Reuters)&nbsp;&#8211;&nbsp;Pandemic-related disruptions to global supply chains and the effects of Russia&#8217;s war in Ukraine have driven up prices of energy, commodities and other necessities.



Here&#8217;s how governments are trying to help hard-hit consumers and companies:



<h2 class="wp-block-heading" id="h-americas">AMERICAS:</h2>



* U.S. President Joe Biden&#8217;s drug pricing reform, part of the Inflation Reduction Act, penalises drugmakers for excessive prices, aiming to reduce out-of-pocket costs for Medicare recipients. The program has been challenged in court by drugmaker Merck &amp; Co MRK.N.



* Brazil&#8217;s state oil company Petrobras PETR4.SA in May approved a new fuel pricing policy for gasoline and diesel that will sharply lower costs for motorists. President Luiz Inacio Lula da Silva has pledged to introduce a bill making the annual minimum wage adjustment above inflation a permanent rule.



* Mexico has raised the minimum wage by 20% for 2023. In March it opened the door to imported Brazilian bovine products for the first time as it looks to diversify its food supply to try to curb inflation.



* Colombia raised the minimum wage by 16% for 2023.



<h2 class="wp-block-heading">EUROPE:</h2>



* The European Commission extended its gas price cap system to all trading hubs in the European Union from May. EU countries agreed on the cap in December.



* French finance Minister Bruno Le Maire said 75 big food industry players had pledged to lower prices on hundreds of products starting next month. The government has been urging food retailers and manufacturers to cut prices to help households.



* Hungarian Prime Minister Viktor Orban earlier in June imposed mandatory price cuts on some basic food items by large retailers.



* Poland plans to raise the minimum wage twice more in 2024. It was increased from January 2023 and will be lifted again from July.



* Germany is launching a programme that will make available tens of billions of euros for firms facing substantial energy costs. The government last year introduced electricity and gas price caps.



* Most British households can expect cheaper energy bills from July after regulator Ofgem slashed its price cap to reflect a slump in wholesale costs. The new cap marks a near 40% fall compared with the previous level.



* The Greek government in May extended to the end of September some of the measures it took last year to help households and businesses with soaring energy bills.



* Italy in March approved measures worth almost 5 billion euros ($5.38 billion) to cut energy bills for families and firms.



* Portugal in March announced a package to help low-income families, including scrapping value added tax on essential food products.



* Spain raised the minimum wage from January by 8%.



<h2 class="wp-block-heading">ASIA-PACIFIC:</h2>



* Australia will raise the minimum wage by 5.75% from July 1. In May, the government said it would include A$14.6 billion ($9.79 billion) over four years in the federal budget for cost of living relief.



* South Korea has cut tariffs from June on higher-priced edible products, including pork and sugar.



* Pakistan in April capped the retail price rise in essential drugs at 14%.



* India in March lifted the inflation-adjusted allowance for federal government employees by 4%.



* Top Japanese companies in March agreed to their largest pay increases in a quarter of a century at annual labour talks, heeding Prime Minister Fumio Kishida&#8217;s call for higher wages.



* Japan has allocated more than 2 trillion yen ($14.33 billion) from reserve funds to try to limit inflation.



* Thailand in March agreed to extend an excise tax cut on diesel to July 20.



* The Philippines in December extended lower tariff rates on rice and other food items to the end of 2023.



<h2 class="wp-block-heading">AFRICA AND MIDDLE EAST:</h2>



* Nigeria needs to review its minimum wage policy, President Bola Tinubu said earlier in June. The country&#8217;s main labour union is negotiating with the government after petrol prices soared following the removal of a decades-old subsidy.



* Morocco in April adopted a decree cancelling VAT on agricultural inputs such as soil nutrients.



* The majority of South Africa&#8217;s public sector unions in late March agreed to a 7.5% wage increase after five months of strike action. The two-year deal is significantly higher than what the government had factored into its 2023 budget.



* Israel in early March reached a wage deal with its main public sector labour union, covering some 350,000 civil servants, and offering 11% increases between 2020 and 2027.



* Turkey in December raised the monthly minimum wage for 2023 by 55% from the level determined in July.



(Reporting by Reuters bureaus; Compiled by Olivier Sorgho, Tristan Chabba, Anna Mackenzie and Laura Lenkiewicz; Editing by Catherine Evans)

Grocery store in Washington

What are governments doing to ease inflation pain?

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg" alt="" class="wp-image-425291" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/06/ND5WGIIUCNP47NKKNZQ4R3QIBM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington, U.S., April 11, 2019. REUTERS/James Lawler Duggan/File Photo</figcaption></figure>



WASHINGTON, June 6 (Reuters)&nbsp;&#8211;&nbsp;The World Bank on Tuesday raised its 2023 global growth forecast as the U.S. and other major economies have proven more resilient than forecast, but said higher interest rates would cause a larger-than-expected drag next year.



Real global GDP is set to climb 2.1% this year, the World Bank said in its latest Global Economic Prospects report. That&#8217;s up from a 1.7% forecast issued in January but well below the 2022 growth rate of 3.1%.



The development lender cut its 2024 global growth forecast to 2.4% from 2.7% in January, citing the continuing effects of tighter monetary policy, particularly in reducing business and residential investment.



&#8220;Growth over the rest of 2023 is set to slow substantially as it is weighed down by the lagged and ongoing effects of monetary tightening, and more restrictive credit conditions,&#8221; it said.



&#8220;These factors are envisaged to continue to affect activity heading into next year, leaving global growth below previous projections.&#8221;



The bank predicted global growth rebounding to 3.0% in 2025.



In January, the World Bank had warned that global GDP was slowing to the brink of recession, but since then, strength in the labor market and consumption in the U.S. had exceeded expectations as has China&#8217;s recovery from COVID-19 lockdowns.



U.S. growth for 2023 is now forecast at 1.1%, more than double the 0.5% forecast in January, while China&#8217;s growth is expected to climb to 5.6%, compared to a 4.3% forecast in January after COVID-reduced growth of 3% in 2022.



The bank, however, halved its previous 2024 U.S. growth forecast for the U.S. to 0.8%, and cut China&#8217;s forecast by 0.4 percentage point to 4.6%.



The euro zone got a forecast increase to 0.4% growth for 2023 from a flat outlook in January, but the forecast for next year was also cut slightly.



<h2 class="wp-block-heading" id="h-banking-stress">BANKING STRESS</h2>



Recent banking sector stress is also contributing to tighter financial conditions that will continue into 2024, the lender said.



It cited one potential downside scenario where banking stress results in a severe credit crunch and broader financial market stress in advanced economies. This would likely cut 2024 growth by nearly half to just 1.3% &#8211; the slowest pace in 30 years outside of the 2009 and 2020 recessions.



&#8220;In another scenario where financial stress propagates globally to a far greater degree, the world economy would fall into recession in 2024,&#8221; the bank added.



The bank said inflation is expected to gradually edge down as growth decelerates and labor demand in many economies softens and commodity prices remain stable. But it added that core inflation is expected to remain above central bank targets in many countries throughout 2024.



(Reporting by David Lawder; Editing by Edwina Gibbs)

FILE PHOTO: World Bank President David Malpass speaks during a news conference at the Spring Meetings of the World Bank Group and IMF in Washington

World Bank lifts 2023 global growth forecasts, but cuts next year’s outlook

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="566" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg" alt="" class="wp-image-425180" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-820x566.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-300x207.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-130x90.jpg 130w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-768x530.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-1536x1061.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5S7UQ4RY7VMH7IOIILNTACUTRA-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: The buildings with the logos of three of South Africa&#8217;s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town, South Africa, September 3, 2017. REUTERS/Mike Hutchings</figcaption></figure>



JOHANNESBURG, May 31 (Reuters)&nbsp;&#8211;&nbsp;Economic growth in key Sub-Saharan African economies will slow this year as weaker global growth makes the backdrop less favourable and high interest rates deter investment, ratings agency S&amp;P said in a research report.



S&amp;P said it now forecast the gross domestic product of eight Sub-Saharan African economies it tracks would expand 2.9% in 2023, down from 3.4% in 2022.



Its latest forecast is slightly more gloomy than a research report from June last year that predicted 2023 growth of 3.2% for seven African economies.



This year&#8217;s report included economic forecasts for Angola, Democratic Republic of Congo, Ethiopia, Ghana, Kenya, Mozambique, Nigeria and South Africa. S&amp;P&#8217;s 2022 report did not feature Mozambique forecasts.



&#8220;The economic environment remains far from growth friendly, reflecting elevated policy uncertainty and above-average systemic financial stress,&#8221; S&amp;P said. &#8220;Policymakers face a tricky trade-off between public debt management, especially given higher interest rates, and macroeconomic stability.&#8221;



However, the end of the COVID-19 pandemic, the reopening of tourism and services sectors, and falling food and fuel prices should bring some relief, S&amp;P added.



S&amp;P now forecasts South Africa&#8217;s economy will grow 0.7% this year, down from a 1.6% forecast given in June 2022 because of an intensifying electricity crisis.



Democratic Republic of Congo and Ethiopia were poised to be the growth leaders in 2023 with GDP expansions of 6% this year, supported by mining in Congo and a recovery in investment in Ethiopia after a ceasefire between the government and Tigray forces, S&amp;P said.



Looking to 2024, S&amp;P projected average growth of 3.4% in the eight countries.



(Reporting by Anait Miridzhanian; Editing by Alexander Winning and Alison Williams)

The buildings with the logos of three of South Africa’s biggest banks, ABSA, Standard Bank and First National Bank (FNB) are seen against the city skyline in Cape Town

S&P sees weaker 2023 growth in key African economies as tailwinds fade

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="512" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg" alt="" class="wp-image-425070" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-820x512.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-300x187.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-144x90.jpg 144w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-768x480.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-1536x960.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/RCNROFCFGZI2NADLSLOTYJIJHU-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Singer Youssou N&#8217;Dour performs during the Muslim Voices: Arts &amp; Ideas festival in New York June 5, 2009. REUTERS/Lucas Jackson/File Photo</figcaption></figure>



ADDIS ABABA, May 26 (Reuters)&nbsp;&#8211;&nbsp;Performers from Ghana, Ethiopia and Tanzania have helped launch a five-year project to try to secure more funding for arts and culture, aiming to persuade&nbsp;African governments to allocate at least 1% of their budgets.



The project, called Connect for Culture&nbsp;Africa&nbsp;(CfCA) has been started by the&nbsp;African Union in collaboration with Selam Ethiopia, a non-governmental organisation that uses film, music and circus performances to address issues such as women rights.



&#8220;We want to empower artists. A lot of artists want to participate in these discussions about good governance, human rights but they are scared of the consequences,&#8221; Lucy Ilado, regional programme director at Selam, said.



It is not yet clear whether&nbsp;African governments, many of whom are struggling with debt repayments and the high costs of living, will be able to allocate more cash to the arts.



The&nbsp;African Union was not immediately available for further comment.



CfCA organisers said they would work with government agencies, research institutions, artists and civil society with the aim of &#8220;budget proposals, budget bills, and, in countries where the process is further along, discussions on increased budget allocation to the culture and creative sectors&#8221;.



Vitali Maembe, a musician from Tanzania who took part in Thursday night&#8217;s concert to launch the project, told Reuters he hoped that more funding would help artists to be better educated.



&#8220;It is very rare you go to the university and see funds for the art students,&#8221; he said.



Hundreds of revellers from Ethiopia and other&nbsp;African countries attended the concert, with music performances featuring saxophones, guitars, drums and traditional Ethiopian instruments.



(Reporting by Dawit Endeshaw; Editing by George Obulutsa and Alison Williams)

FILE PHOTO: Singer N’Dour performs during Muslim Voices: Arts & Ideas festival in New York

Musicians launch drive for more funding for arts in Africa

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="612" height="408" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg" alt="" class="wp-image-400697" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1076949610-612x612-1-300x200.jpg 300w" sizes="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">Double exposure of coin stack with city background and world map, financial graph, world map and global network business concept idea, element by NASA.</figcaption></figure>



May 26 (Reuters)&nbsp;&#8211;&nbsp;Emerging markets currencies headed for weekly declines on Friday as expectations of higher-for-longer U.S. interest rates gained steam, while Turkey&#8217;s lira weakened to a record low of 20 against the dollar ahead of a presidential runoff election.



MSCI&#8217;s emerging market currencies index&nbsp;.MIEM00000CUS&nbsp;was flat by 0847 GMT on Friday, but was set to log declines for the third straight week.



EM currencies have been pressured by a rally in the dollar, with investors scaling back expectations of a rate cut from the Fed this year after a slew of robust U.S. economic data, as well as the lack of an agreement to raise the U.S. debt ceiling with only a handful of days left before the deadline.



&#8220;This month&#8217;s hawkish re-appraisal of the Fed&#8217;s cycle is strengthening the dollar across the board,&#8221; ING strategists said in a note.



&#8220;Some of the more vulnerable EM currencies are hitting new lows. The subdued Chinese growth story certainly is not helping either.&#8221;



Still, the dollar =USD paused for breath on Friday on news that President Joe Biden and House Speaker Kevin McCarthy were nearing a debt ceiling agreement.



Turkey&#8217;s liraTRYTOM=D3, which has been steadily weakening since incumbent Tayyip Erdogan&#8217;s strong showing in the first round of the presidential election, breached the 20-to-the-dollar mark ahead of Sunday&#8217;s runoff vote.



Erdogan, whose unorthodox monetary policies have unnerved foreign investors and resulted in a sharp drop in the lira, is largely expected to remain in power after the runoff.



China&#8217;s yuanCNY=CFXS rebounded from a near six-month low against the dollar on Friday, as some major state-owned banks sold the U.S. currency to prevent the yuan from sinking further.



Heightened Sino-U.S. trade tensions as well as the country&#8217;s weak economic recovery has pressed the yuan in recent weeks.



Elsewhere, South Africa&#8217;s rand ZAR= made a marginal recovery on Friday from a new record low struck overnight against the dollar, after the central bank&#8217;s super-sized interest rate hike failed to impress some traders and economists.



The rand was heading for its fifth straight week in the red, having been pummelled by a crippling power crisis and concerns about a U.S. debt default.



EM stocks&nbsp;.MSCIEF&nbsp;rose 0.6%, snapping a three-day losing streak with investors cautiously optimistic about a U.S. debt ceiling deal after the latest update. The index was also set for weekly declines of 0.7%.



Asian stocks led gains on Friday, with India&#8217;s blue-chip Nifty index&nbsp;.NSEI&nbsp;up 0.8% and Taiwan stocks&nbsp;.TWII&nbsp;jumping 1.3%.



Among central and eastern European currencies, the Polish zloty&nbsp;EURPLN=&nbsp;fell 0.4% against the euro, pulling back from recent two-year highs, while the Czech crown&nbsp;EURCZK=&nbsp;was down 0.3%.



DBRS is expected to review Poland&#8217;s credit rating while Moody&#8217;s will review the Czech Republic&#8217;s rating later in the day.



(Reporting by Siddarth S in Bengaluru; editing by Mark Heinrich)

istockphoto-1076949610-612×612-1

FX set for weekly losses, Turkey’s lira falls to record low against dollar

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg" alt="" class="wp-image-404443" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/Stock-value-rising-and-falling.jpg 1254w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering</figcaption></figure>



May 25 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks hit a one-month low on Thursday with sentiment hurt by mounting Sino-U.S. trade disputes, while the Turkish lira and the South&nbsp;African rand weakened ahead of interest rate decisions by both countries.



MSCI&#8217;s emerging market equities index&nbsp;.MSCIEF&nbsp;was down 0.6% by 0815 GMT, its third straight session in the red.



Disputes over technology between China and the United States have escalated in recent days, with&nbsp;allegations&nbsp;of&nbsp;spying&nbsp;by Chinese hackers exacerbating tensions and denting sentiment that was already fragile given the absence of a deal to raise the U.S. debt ceiling.



Hong Kong&#8217;s Hang Seng index&nbsp;.HSI&nbsp;took a big hit, tumbling 1.9%, while stocks in mainland China&nbsp;.CSI300&nbsp;lost 0.2% and the yuan also weakened.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was at a record low with the country&#8217;s central bank expected to hold interest rates at 8.5% later on Thursday.



The decision would come days before Turkey&#8217;s presidential runoff elections where incumbent Tayyip Erdogan, whose unorthodox monetary policies have been unpopular with investors, is widely expected to emerge victorious.



&#8220;Turkey has been largely uninvestable for foreign investors for a while now, so yet another rate cut would increase the need for further capital controls on locals and deteriorate the inflation outlook even further,&#8221; said Erik Meyersson, Chief Emerging Markets Strategist at SEB.



<h2 class="wp-block-heading" id="h-u-s-debt-ceiling-concerns-hurt-south-african-rand-before-rate-decision"><a href="https://www.cnbcafrica.com/2023/u-s-debt-ceiling-concerns-hurt-south-african-rand-before-rate-decision/">U.S. debt ceiling concerns hurt South African rand before rate decision</a></h2>



Turkish authorities&nbsp;asked&nbsp;banks this week to buy treasury eurobonds, after Ankara&#8217;s credit default swaps (CDS) soared following the May 14 first round of the presidential election, sources told Reuters.



South&nbsp;Africa&#8217;s rand&nbsp;ZAR=, which has been pummelled by a crippling power crisis in the country, slipped 0.2% on Thursday as the safe-haven dollar got a boost from the debt ceiling uncertainty.



The South&nbsp;African Reserve Bank (SARB) is expected to hike rates by 25 basis points &#8211; its 10th rate increase in a row &#8211; though some analysts say a larger 50-basis-point hike is also possible, as inflation remains above the central bank&#8217;s target.



&#8220;Should the SARB raise rates by 50bps we expect some short term firming of the ZAR, although the sustainability thereof will be under question as markets refocus on international events,&#8221; said Shaun Murison, a senior market analyst at IG.



&#8220;The higher than expected rate hike, (should it occur), would also be a net negative for GDP in South&nbsp;Africa.&#8221;



The Polish zloty&nbsp;EURPLN=&nbsp;rose 0.2% against the euro, with a member of the country&#8217;s central bank Monetary Policy Committee, Ireneusz Dabrowski,&nbsp;saying&nbsp;rate cuts could be possible by 2023-end.



The broader EM currencies index&nbsp;.MIEM00000CUS&nbsp;was down 0.3%, with the dollar&nbsp;=USD&nbsp;at a two-month high as fears of a U.S debt default mounted after ratings company&nbsp;Fitch&nbsp;put the country&#8217;s credit on negative watch.



Elsewhere, crisis-stricken Sri Lanka should be able to conclude newly launched debt-restructuring talks by September, or November at the latest, its president&nbsp;said&nbsp;on Thursday, adding that the negotiations had made &#8220;remarkable&#8221; progress.



(Reporting by Amruta Khandekar; editing by Mark Heinrich)

Macro view of a screen of trading terminal with abstract financial graph and digits. Trading and forex concept. 3D Rendering

Stocks at one-month low; Turkey, South Africa rate decisions on tap

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-820x547.jpg" alt="" class="wp-image-425022" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/5DYEB66R6VLL3HLB5YDEZSZEQM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Vessels are seen as they await inspection under the Black Sea Grain Initiative, brokered by the United Nations and Turkey, in the southern anchorage of the Bosphorus in Istanbul, Turkey December 11, 2022. REUTERS/Yoruk Isik</figcaption></figure>



UNITED NATIONS, May 24 (Reuters)&nbsp;&#8211;&nbsp;The United Nations is working with the&nbsp;African Export-Import Bank (Afreximbank) to create a platform to help process transactions for Russian exports of grain and fertilizer to&nbsp;Africa, the top U.N. trade official told Reuters on Wednesday.



An agreement struck in July last year requires the U.N. to help Russia overcome any obstacles to its grain and fertilizer exports for three years. It was reached at the same time as a deal allowing the safe Black Sea export of food and fertilizer from Ukraine following Russia&#8217;s February 2022 invasion.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D31Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">deals</a>&nbsp;were intended to ease a global good crisis that the United Nations said was worsened by the war because both countries produce grain and fertilizer for world markets, particularly in&nbsp;Africa&nbsp;and the Middle East.



&#8220;We have not turned the corner on this,&#8221; Rebeca Grynspan, who leads the implementation of the U.N. deal with Russia, said in an interview, describing the Black Sea accord and pact between the U.N. and Russia as continuing to &#8220;be a life line for food security&#8221; around the world.



The Black Sea deal was&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D2LU&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">extended</a>&nbsp;last week for the third time after Russia agreed to a further two months. But Moscow has been threatening to quit unless a list of&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D31Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">demands</a>&nbsp;to improve its own food and fertilizer exports is met.



<h2 class="wp-block-heading" id="h-agile-transactions">&#8216;AGILE TRANSACTIONS&#8217;</h2>



Russia&#8217;s agricultural exports are not subject to Western sanctions imposed over the invasion of Ukraine, but Moscow says there are restrictions on payments, logistics and insurance and a wider chilling effect from the measures. The United States and others have dismissed Russia&#8217;s complaints.



Grynspan said she was working with Afreximbank to try to help small and medium-sized countries in&nbsp;Africa&nbsp;combat disrupted trading and access Russian grain and fertilizer through &#8220;more agile transactions.&#8221;



&#8220;We are working with them (Afreximbank) and making a platform that will allow for a more agile due diligence with the clients to comply with the sanctions, but allow for the transactions of food and fertilizers with&nbsp;Africa,&#8221; she said.



Cairo-based Afreximbank was not immediately available for comment. Grynspan did not share any further details as discussions continue.



Russia&#8217;s agricultural bank, known as Rosselkhozbank, was cut off from the SWIFT international payment network by the European Union in June. Russia wants it reconnected, but the EU has said it was not considering reinstatement of Russian banks.



As an alternative, U.S. bank JPMorgan Chase &amp; Co has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N31Z00M&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">processed</a>&nbsp;some Russian grain export payments, sources told Reuters last month, and could process&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3703VD&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">dozens</a>&nbsp;more. But Russia has dismissed this as unsuitable in the longer term.



Some 260,000 metric tonnes of Russian fertilizer has also been stuck in several European ports. Moscow said the fertilizer would be donated to countries in need.



The United Nations helped arrange for the release of the first two shipments, to&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AW1N32503D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Malawi</a>&nbsp;and&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL2N36P003&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Kenya</a>. A delivery was also planned for Nigeria and possibly Sri Lanka and South&nbsp;Africa, Grynspan said.



(Reporting by Michelle Nichols; editing by Grant McCool)

FILE PHOTO: Vessels are seen as they await inspection under the Black Sea Grain Initiative in the southern anchorage of the Bosphorus in Istanbul

UN, Africa bank work to ease Russian grain, fertilizer exports -UN official

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-820x547.jpg" alt="" class="wp-image-422542" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-1536x1024.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/01/GettyImages-631883172-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Akinwumi Ayodeji Adesina, president of the African Development Bank, speaks during a panel session at the World Economic Forum (WEF) in Davos, Switzerland, on Tuesday, Jan. 17, 2017. World leaders, influential executives, bankers and policy makers attend the 47th annual meeting of the World Economic Forum in Davos from Jan. 17 &#8211; 20. Photographer: Jason Alden/Bloomberg via Getty Images</figcaption></figure>



JOHANNESBURG, May 24 (Reuters)&nbsp;&#8211;&nbsp;Africa&#8217;s economic growth is set to edge upwards in 2023 and 2024 amid tighter global monetary policy and the fallout from Russia&#8217;s invasion of Ukraine, but South Africa&#8217;s will plummet, the African Development Bank (AfDB) said.



The continent&#8217;s GDP growth is projected to rise to 4% this year and 4.3% in 2024 after a 3.8% expansion last year, the AfDB said in its annual African Economic Outlook on Wednesday.



However, GDP growth was still some way below the 4.8% expansion in 2021, the lender found.



AfDB President Akinwumi Adesina called for &#8220;cautious optimism&#8221; in the face of risks including high global interest rates and a strong dollar while the continuing war in Ukraine could worsen food insecurity and push up prices further.



Growth in the continent&#8217;s southern region is projected to slow sharply to 1.6% this year from 2.7% last year, dragged down by poor economic performance in South Africa, where scheduled power cuts of up to 10 hours a day have stymied the economy.



In a sharp downward revision, the AfDB now forecasts the continent&#8217;s most industrialised economy to grow by only 0.2% in 2023 and 1.5% next year.



Average African inflation is set to accelerate again this year to 15.1%, from 14.2% in 2022, the report said.



The average debt-to-GDP ratio in Africa is expected to be 66% this year and 65% next year, the AfDB said, noting a rise in domestic debt.



&#8220;Domestic debt restructuring, therefore, should be part of the negotiations for the resolution of public debt crises in countries facing heightened risks,&#8221; it said.



AfDB economic forecasts&nbsp;<a href="https://tmsnrt.rs/3MT0LJL" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/3MT0LJL</a>



(Reporting by Rachel Savage; Editing by Karin Strohecker and David Goodman)

Opening Day Of The World Economic Forum (WEF) 2017

African GDP growth to edge up in 2023 despite South Africa slide -AfDB

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Stock</figcaption></figure>



May 23 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks were pulled down on Tuesday by concerns around China&#8217;s uneven economic recovery and uncertainty over a U.S. debt ceiling deal, while the Hungary&#8217;s forint weakened ahead of a widely expected interest rate cut



MSCI&#8217;s index for emerging market equities&nbsp;.MSCIEF&nbsp;was down 0.2% by 0826 GMT, slipping from a two-week high hit earlier in the session, while currencies&nbsp;.MIEM00000CUS&nbsp;were 0.1% lower.



China&#8217;s blue-chip stocks&nbsp;.CSI300&nbsp;fell 1.4% as investors remained concerned that the country&#8217;s post-pandemic recovery was on a weak footing after a slew of downbeat data in April, while leaders of the Group of Seven (G7) rich democracies&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J0V4&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">pledged</a>&nbsp;to &#8220;de-risk&#8221; without &#8220;decoupling&#8221; from China.



The yuan&nbsp;CNY=CFXS&nbsp;inched closer to five-month lows hit recently as the dollar firmed following hawkish comments from some Federal Reserve officials and after U.S. President Joe Biden and House Speaker Kevin McCarthy&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J0TM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">failed to reach</a>&nbsp;an agreement on Monday on raising the debt ceiling.



The Hungarian forint&nbsp;EURHUF=&nbsp;eased 0.6% against the euro ahead of a local monetary policy decision where analysts expect the National Bank of Hungary (NBH) to deliver the region&#8217;s first interest rate cut since 2021.



A majority of economists polled by Reuters&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37F1QS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">projected</a>&nbsp;a 100 bps cut in the one-day rate to 17%, given a pullback in gas prices and consumer demand.



&#8220;I would say that the market is okay (with) the story of the normalisation of NBH and the pressure on the forint is not that high,&#8221; said Frantisek Taborsky, EMEA FX strategist at ING.



&#8220;Of course we can see some weakness after the decision but in general I think that the forint is still a very good currency for the market because the carry or the interest rate differential is still very high despite the possible rate cut today.&#8221;



Poland&#8217;s zloty&nbsp;EURPLN=&nbsp;gained 0.1% versus the euro. Data showed Polish retail sales fell 7.3% year-on-year in April, less than a 7.8% decline forecast by analysts.



While EM currencies started 2023 on a strong note, they have been pressured in recent weeks by signs of weak economic recovery in China and as the U.S. debt ceiling standoff stokes fears of a hit to global growth.



Turkey&#8217;s lira&nbsp;TRYTOM=D3&nbsp;languished at record lows as markets braced for a presidential runoff vote where incumbent Tayyip Erdogan is widely expected to be re-elected and to continue with his unorthodox monetary policies.



Turkish central bank&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37K0L7&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">gross reserves</a>&nbsp;are expected to have fallen some $3.5 billion to about $101.5 billion last week, calculations of five bankers showed on Tuesday.



Elsewhere, holders of Ghana&#8217;s international bonds face a principal write down of 30% and a cut to coupons of 20% in an upcoming debt restructuring, Morgan Stanley&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37J4NP&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;on Monday.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; Editing by Kirsten Donovan)

Investment-management

EM stocks slip, Hungary’s forint weakens ahead of rate decision

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



May 22 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks gained on Monday as hopes of improved Sino-U.S. relations buoyed equities in China following remarks from U.S. President Joe Biden, while the Turkish lira continued to languish at record lows.



MSCI&#8217;s emerging market equities index&nbsp;.MSCIEF&nbsp;was up 0.6% at 0849 GMT, with stocks in mainland China&nbsp;.CSI300&nbsp;logging similar gains and snapping four straight sessions of losses.



Following a raft of weak data in April which signalled weak consumer demand in the world&#8217;s second largest economy and soured sentiment towards China&#8217;s stocks, the country&#8217;s central bank has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J07R&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">vowed</a>&nbsp;to support economic growth.



Also aiding the market mood, U.S. President Joe Biden&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37I079&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">said</a>&nbsp;he expected a thaw in frosty relations with China &#8220;shortly&#8221; after strains caused by an incident earlier this year.



The Chinese yuan&nbsp;CNY=&nbsp;gave up early gains to fall 0.3% as China&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37J037&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">kept</a>&nbsp;its benchmark lending rates unchanged for the ninth month, in line with market expectations.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was at a record low of 19.82 against the dollar, having steadily weakened following the outcome of the first round of presidential elections last week.



Incumbent Tayyip Erdogan&#8217;s lead over his main rival disappointed investors hoping for an opposition win and a return to orthodox monetary policies.



Data&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AAPN0WFB23&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">showed</a>&nbsp;Turkey&#8217;s consumer confidence index rose 4.1% to 91.1 points in May, continuing an upward trend ahead of a second round of votes later this month.



&#8220;Until the 2nd round of the presidential election, the central bank will certainly try its best to prevent a TRY crash,&#8221; said Ulrich Leuchtmann, head of FX and commodity research at Commerzbank, in a note.



&#8220;However, it cannot work magic. Even before the second round of voting, a scenario is possible in which the dams burst and the lira takes a depreciation hit.&#8221;



Erdogan will attend a meeting in Istanbul on Monday while Sinan Ogan, Turkey&#8217;s nationalist presidential candidate who finished third in the initial vote, is expected to announce a decision on him endorsing either Erdogan or his rival Kemal Kilicdaroglu in the runoff vote.



Among central and eastern European currencies, the Polish zloty&nbsp;EURPLN=&nbsp;rose 0.2% against the euro following a slew of economic data.



Polish&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N36A08S&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">corporate sector wages</a>&nbsp;rose by an annual 12.1% in April, in line with expectations, while growth in&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AS8N36A08O&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">producer prices</a>&nbsp;was below estimates.



The broader EM currencies index&nbsp;.MIEM00000CUS&nbsp;was largely unchanged, with the dollar&nbsp;=USD&nbsp;steady as U.S. debt ceiling negotiations were&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37I018&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">set to resume</a>&nbsp;after a setback late last week.



President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling later in the day, after a phone call on Sunday which both sides described as positive.



Elsewhere, the Bank of Israel is expected to hike rates on Monday given high inflation.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; Editing by Jan Harvey)

World map with charts and graphs as symbols of global finance

Stocks gain on hopes of improved Sino-U.S. relations, FX muted

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE-820x462.jpeg" alt="" class="wp-image-424945" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE-820x462.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE.jpeg 929w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Ngozi Okonjo-Iweala, director general of the World Trade Organization (WTO), speaks during the Clinton Global Initiative (CGI) annual meeting in New York, on Monday, Sept. 19, 2022. Michael Nagle | Bloomberg | Getty Images</figcaption></figure>



World Trade Organization Director-General Ngozi Okonjo-Iweala urged diversification in global supply chains, amid ongoing efforts to progress the body’s reform.



“There is an overconcentration of manufacturing in certain sectors in certain countries,” she told CNBC’s Martin Soong on the sidelines of the latest weekend summit of G-7 (Group of Seven) major economic powers in Hiroshima, Japan. “I agree that we need to build resilience, that the world cannot be reliant on a few countries for a few key products.”



She gave the examples of pharmaceuticals and the dearth of Covid-19 vaccine available to certain importing regions, as producers introduced export restrictions during the pandemic. She also referenced the worldwide shortage of critical semi-conductor chips, which has created bottlenecked manufacturing in the technological and automotive industries.



The WTO’s chief pitched the dual benefits of pursuing diversification in developing countries to simultaneously boost their economic growth and meet global supply requirements.



“Let’s reglobalize by situating diversifying industries into these countries. We kill two birds with one stone. One is we build global resilience beyond just our neighbors and our friends, because you never know who is your friend. Your friend today can be not your friend tomorrow,” she argued.



“Let’s look for those areas where we have the right environment, diversify and use that to bring them in from the margin into the global system. That will re-spur growth in those countries and in the world.”



The emphasis on “reglobalization” comes as geopolitical tensions and recent U.S. legislation have stoked worries over the potential fragmentation of global trade.



The U.S. Inflation Reduction Act — a sweeping green package of tax, health and climate legislation signed by President Joe Biden in August last year — introduced subsidies to galvanize the domestic production of electric vehicles, at the same time unlocking “serious concerns” within the European Union over the outlook for their own exported goods.



The fate of Western trade with key manufacturing hub China has also come under question, although G-7 leaders explicitly restated they are not pursuing a policy of economic decoupling from Beijing in their latest communique of Saturday.



“Our policy approaches are not designed to harm China nor do we seek to thwart China’s economic progress and development. A growing China that plays by international rules would be of global interest. We are not decoupling or turning inwards. At the same time, we recognize that economic resilience requires de-risking and diversifying,” they said, nevertheless noting the need to take collective and individual steps to invest in their own “economic vibrancy” and dwindle “excessive dependencies in our critical supply chains.”



The WTO faces struggles closer to home, amid bids to reform one tier of its global trade dispute settlement system, the Appellate Body, which the U.S. Trade Representative’s office in February 2020 accused of “persistent overreaching” and extending its own power “at the expense of the authority of the United States and the other WTO members.”



The Appellate Body has been effectively paralyzed following the U.S. blockage of adjudicator appointments in recent years.



“Our goal is a fully functioning (dispute system) by 2024,” Deputy United States Trade Representative Maria Pagan told Reuters in January. The WTO’s Okonjo-Iweala said Washington and other countries have been engaging in dialogue to overhaul the Appellate Body, stressing her desire to “move beyond the discussion to specific proposals.”



Asked about reports over an U.S. reform suggestion that both the plaintiff and the defendant must agree before moving a dispute to the attention of the Appellate Body, the director-general said that such a pitch had yet to materialize as a formal proposal.



“I think those are some ideas maybe that people might have heard, the U.S. talk about, and so on. But we don’t have proposals yet on paper.”



The WTO is set to hold its next Ministerial Conference — the so-styled MC13 — in February 2024.



“We may not have completed the reform by then,” she noted, nevertheless adding, “I hope and expect that we will have done a great deal of work that will show that the organization is moving purposefully towards reforming that system.”

107120869-1663619761616-gettyimages-1243369951-CLINTON_GLOBAL_INITIATIVE

WTO chief pushes for reglobalized supply chains to cut down bottleneck risks

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="615" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg" alt="" class="wp-image-403062" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-820x615.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2021/05/17086765822_14c89cd230_b.jpg 1024w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



May 19 (Reuters)&nbsp;&#8211;&nbsp;Most emerging market currencies on Friday were set for losses at the end of a rollercoaster week that saw the dollar being lifted by optimism over a U.S. debt ceiling deal, while Turkey&#8217;s lira hovered close to an all-time low seen in the previous session.



MSCI&#8217;s index of EM currencies&nbsp;.MIEM00000CUS&nbsp;was up 0.2% at 0828 GMT, set to snap a three-day losing streak. Still, the index was poised to end the week 0.4% lower &#8211; its second straight weekly decline.



The dollar&nbsp;=USD&nbsp;paused for breath on Friday after a rally this week but was not far from its recent two-month high.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37F3JO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Turkish lira</a>TRYTOM=D3&nbsp;slipped to a record low of 19.8050 to the dollar late on Thursday, having steadily weakened following Sunday&#8217;s presidential vote where incumbent Tayyip Erdogan&#8217;s strong showing dashed investor hopes for an opposition win and shift to orthodox monetary policy.



The currency, which declined 1% so far this week, still hovered close to the record low.



&#8220;The authorities will intensify efforts to stablise the lira through intervention and measures to encourage banks to hold lira, but without a change in policy direction by Erdogan the situation looks unsustainable, meaning the currency will weaken further,&#8221; said Jon Harrison, managing director of emerging market macro strategy at TS Lombard.



Turkey&#8217;s central bank&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37G0YX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">reversed</a>&nbsp;a decision to require banks to hold securities against cash withdrawals on credit cards and jewellery expenses, according to a central bank document seen by Reuters on Friday.



South Africa&#8217;s rand&nbsp;ZAR=&nbsp;shed early gains to trade tepid against the greenback ahead of commentary by U.S. Federal Reserve Chair Jerome Powell later in the day. S&amp;P Global is also expected to review South Africa&#8217;s sovereign rating on Friday.



The rand has been pummelled in recent days by concerns about a mounting power crisis crimping growth and is down marginally on the week.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;edged higher and was last seen at 79.98, pushing back past the level of 80 to the dollar, while among central and eastern European currencies, the Hungarian forint&nbsp;EURHUF=&nbsp;fell 0.8% against the euro.



China&#8217;s yuan, which has been pressured by data highlighting the country&#8217;s slow post pandemic recovery, was set for declines of 1% this week.



EM stocks&nbsp;.MSCIEF&nbsp;were range-bound, but on track to eke out gains this week, boosted by growing hopes that a deal over the U.S. debt ceiling could be reached soon, helping the world&#8217;s largest economy avoid a default.



Chinese President Xi Jinping on Friday&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37G04Y&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">unveiled</a>&nbsp;a grand plan for Central Asia&#8217;s development, saying the country is ready to coordinate development strategies with Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.



Elsewhere, the U.S. has&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37F2JN&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">assured</a>&nbsp;the United Nations that it will shield a proposed UN-administered Venezuela humanitarian fund from creditors, people familiar with the matter said on Thursday, removing a key obstacle to getting the money flowing.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; Editing by Sherry Jacob-Phillips)

Turkey Lira, photo via Flickr

Currencies set for weekly drop, Turkey’s lira hovers near all-time low

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="612" height="357" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg" alt="" class="wp-image-400669" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1.jpg 612w, https://cms.cnbcafrica.com/wp-content/uploads/2021/04/istockphoto-1030878162-612x612-1-300x175.jpg 300w" sizes="(max-width: 612px) 100vw, 612px" /><figcaption class="wp-element-caption">World map with charts and graphs as symbols of global finance</figcaption></figure>



May 17 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies hit a three-month low on Wednesday as concerns over China&#8217;s slow economic recovery dented sentiment, while the post-election selloff in Turkish markets extended into a third straight day.



Turkey&#8217;s dollar-denominated sovereign bonds tumbled to six-month lows on Wednesday, while bank stocks&nbsp;.XBANK, which had opened higher, reversed course to fall 0.6%.



Turkey&#8217;s main opposition party said it had&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37E1XG&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">filed complaints</a>&nbsp;over suspected irregularities at thousands of ballot boxes in Sunday&#8217;s landmark election, in which President Tayyip Erdogan performed better than expected.



The lira&nbsp;TRYTOM=D3&nbsp;was last at 19.75, edging closer to its all-time low of 19.80 against the dollar, with Turkey now headed for a second round of votes on May 28, where analysts expect Erdogan to emerge victorious.



Erdogan is likely to stick to policies he has implemented over the past 10 years, and he might allow interest rates to rise somewhat, but not to the degree that is needed, according to Gustavo Medeiros, head of research at Ashmore.



MSCI&#8217;s emerging market currencies index&nbsp;.MIEM00000CUS&nbsp;was down 0.3% by 1054 GMT.



The Chinese yuan&nbsp;CNY=CFXS<a href="https://www.reutersconnect.com/all?search=all%3AL1N37E0LV&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">weakened</a>&nbsp;past 7 per dollar on Wednesday for the first time in five months amid geopolitical tensions and more signs China&#8217;s post-COVID recovery is losing steam.



New home prices&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37E035&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">rose</a>&nbsp;for the fourth straight month in April but at a slower pace, adding to a pile of recent data suggesting weakening consumer demand in the world&#8217;s second-biggest economy.



Meanwhile, investors gravitated towards the safe-haven dollar&nbsp;=USD, as they assessed risks of a U.S. debt default amid&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D0XM&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">talks</a>&nbsp;to lift the debt ceiling.



Additionally, recent U.S. data underscoring robust consumer spending has dampened hopes of interest rate cuts, boosting the dollar.



However, any benefits to the dollar from the debt ceiling uncertainty are likely to be limited, said Mark Haefele, chief investment officer, UBS Global Wealth Management.



&#8220;Currency markets are forward-looking and likely to assume Congress will agree to a last-minute deal.&#8221;



The South African rand&nbsp;ZAR=&nbsp;slipped 0.9% ahead of March retail sales data that could shed more light on the health of the economy amid a mounting power crisis which has crimped growth.



Broader emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.4%, snapping a two-session rally.



Elsewhere, Ecuador&#8217;s National Assembly on Tuesday&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37D2C5&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">began</a>&nbsp;an impeachment hearing against President Guillermo Lasso, who could be removed from his post.



<a href="https://www.reutersconnect.com/all?search=all%3AL4N37D4M0&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Moody&#8217;s</a>&nbsp;on Tuesday said it considered Ecuador&#8217;s debt buyback operation for providing debt relief and channelling funds to protect the Galapagos Islands a distressed exchange and a default.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets <a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



(Reporting by Amruta Khandekar; additional reporting by Karin Strohecker; Editing by Rashmi Aich and Emelia Sithole-Matarise)

Currencies hit 3-week low, Turkey post-election selloff resumes

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="234" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-820x234.jpg" alt="" class="wp-image-424829" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-820x234.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-300x86.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-160x46.jpg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-768x220.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-1536x439.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/blog-2099x600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



Weaker currencies make the fight to curb inflation harder given the region’s dependence on imports



Most sub-Saharan African currencies have weakened against the US dollar, fanning inflationary pressures across the continent as import prices surge. This, together with a&nbsp;<a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2023/04/14/regional-economic-outlook-for-sub-saharan-africa-april-2023">growth slowdown</a>, leaves policymakers with difficult choices as they balance keeping inflation in check with a still-fragile recovery.



As the&nbsp;<a href="https://www.imf.org/en/Blogs/chart-of-the-week">Chart of the Week</a>&nbsp;shows, the average depreciation for the region since January 2022 is about 8 percent. The extent varies by country, however. Ghana’s cedi and Sierra Leone’s leone depreciated by more than 45 percent.



The&nbsp;<a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2023/04/14/regional-economic-outlook-for-sub-saharan-africa-april-2023#Managing-Exchange-Rate-Pressures-in-Sub-Saharan-Africa%E2%80%94Adapting-to-New-Realities">depreciations</a>&nbsp;across the region were mostly driven by external factors. Lower risk appetite in global markets and interest rate hikes in the United States pushed investors away from the region towards safer and higher paying US treasury bonds.



Foreign exchange earnings took a hit in many countries as demand for the region’s exports dropped because of the economic slowdown in major economies. At the same time, high oil and food prices, partly due to Russia’s war in Ukraine, pushed up import costs in 2022.



Large budget deficits have compounded the effects of these external shocks by increasing the demand for foreign exchange. About half of the countries in the region had deficits exceeding 5 percent of gross domestic product in 2022, putting pressure on their exchange rates.



<h2 class="wp-block-heading" id="h-implications">Implications</h2>



When currencies weaken against the US dollar, local prices rise, as much of what people buy, including essential items like food, are imported. More than two-thirds of imports are priced in US dollars for most countries in the region.



A 1&nbsp;percentage point increase in the rate of depreciation against the US dollar leads, on average, to an increase in inflation of 0.22&nbsp;percentage points within the first year in the region. There is also evidence that inflationary pressures do not come down quickly when local currencies strengthen against the US dollar.



Weaker currencies also push up public debt. About 40 percent of public debt is external in sub-Saharan Africa and over 60 percent of that debt is in US dollars for most countries. Since the beginning of the pandemic, exchange rate depreciations have contributed to the region&#8217;s rise in public debt by about 10 percentage points of GDP on average by end-2022, holding all else equal. Growth and inflation (which reduces the real value of existing debts) helped to contain the public debt increase to about&nbsp;<a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2023/04/14/regional-economic-outlook-for-sub-saharan-africa-april-2023#Managing-Exchange-Rate-Pressures-in-Sub-Saharan-Africa%E2%80%94Adapting-to-New-Realities">6 percent of GDP</a>&nbsp;during the same period.



Many central banks in the region have tried to prop up their currencies by supplying foreign exchange to importers from their reserves. But with reserve buffers running low in many countries, there is little room to continue intervening in foreign exchange markets.



Countries have also applied administrative measures such as foreign exchange rationing or banning foreign currency transactions. These measures can be highly distortive and create opportunities for corruption.&nbsp;



Given that the external shocks are expected to persist, countries where exchange rates are not pegged (fixed) to a currency have little choice but to let the exchange rate adjust and tighten monetary policy to fight inflation. Countries with pegged exchange rates will need to adjust monetary policy in line with the country of the peg. In both country groups, fiscal consolidation can help to rein in external imbalances and limit the increase in debt related to currency depreciation. Structural reforms can help to boost growth.



This blog is based on an analytical note from the&nbsp;<a href="https://www.imf.org/en/Publications/REO/SSA/Issues/2023/04/14/regional-economic-outlook-for-sub-saharan-africa-april-2023">IMF’s Regional Economic Outlook</a>&nbsp;for sub-Saharan Africa.

blog-2099×600-afr-currencies-esther-ruth-mbabazi-imf-photos-51674780576-a6850dcc5f-o

African Currencies Are Under Pressure Amid Higher-for-Longer US Interest Rates

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg" alt="" class="wp-image-424734" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2023/05/Investment-management.jpg 1200w" sizes="(max-width: 820px) 100vw, 820px" /></figure>



May 11 (Reuters)&nbsp;&#8211;&nbsp;Emerging market stocks fell for a third session on Thursday as gloomy data from China stoked concerns about deflation and the country&#8217;s pace of recovery, while currencies were also subdued against a firm dollar.



The MSCI&#8217;s index for emerging market stocks&nbsp;.MSCIEF&nbsp;was down 0.2% at 0827 GMT, while currencies in the region&nbsp;.MIEM00000CUS&nbsp;also logged similar declines.



Stocks in China&nbsp;.CSI300&nbsp;slipped 0.2%, while the yuan&nbsp;CNY=&nbsp;hit its lowest level in two months against the dollar as data showed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37803W&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">China&#8217;s consumer prices</a>&nbsp;rose at the slowest pace in more than two years in April, while factory gate deflation deepened.



The dollar&nbsp;=USD&nbsp;which had taken a hit after a U.S. inflation report on Wednesday raised bets of a rate hike pause by the Federal Reserve, found its footing following the release of the Chinese data, which provided further evidence of the country&#8217;s weak post-pandemic recovery.



The&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N37820D&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">South African rand</a>ZAR=&nbsp;was under renewed selling pressure on Thursday, hitting a fresh three-year low against the dollar as sentiment towards the currency was dented by the worst power cuts on record.



&#8220;South Africa is moving into the colder winter months and preparations are being made for an escalation of the load-shedding schedule. This is having a dire effect on what is already a fragile economy,&#8221; said Shaun Murison, senior market analyst at IG.



<a href="https://www.reutersconnect.com/all?search=all%3AL1N378096&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Pakistan&#8217;s rupee</a>&nbsp;slumped to new record low of 296 against the greenback, amid deadly street protests sparked by the arrest of former Prime Minister Imran Khan and of some senior leaders of his party.



The Russian rouble&nbsp;RUBUTSTN=MCX&nbsp;was last at 75.45, jumping to a&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3780JR&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">seven-week high</a>&nbsp;against the U.S. dollar in early trading on Thursday.



The Hungarian forint&nbsp;EURHUF=&nbsp;and the Polish zloty&nbsp;EURPLN=&nbsp;slid from over one-year highs hit in the previous session, down 0.4% and 0.3% respectively.



<a href="https://www.reutersconnect.com/all?search=all%3AL8N37827F&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Czech inflation</a>&nbsp;slowed further in April to its lowest since March 2022, data showed on Thursday, possibly taking pressure off the country&#8217;s central bank to hike rates.



An&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3771Z2&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">International Monetary Fund</a>&nbsp;(IMF) staff team is expected to arrive in Sri Lanka on Thursday as the crisis-hit country prepares for the first review of a loan programme in September.



For GRAPHIC on emerging market FX performance in 2023, see&nbsp;<a href="http://tmsnrt.rs/2egbfVh" target="_blank" rel="noreferrer noopener">http://tmsnrt.rs/2egbfVh</a>



For GRAPHIC on MSCI emerging index performance in 2023, see&nbsp;<a href="https://tmsnrt.rs/2OusNdX" target="_blank" rel="noreferrer noopener">https://tmsnrt.rs/2OusNdX</a>



For TOP NEWS across emerging markets&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3ARR:5877&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Read full story</a>



For CENTRAL EUROPE market report, see&nbsp;CEE/



For TURKISH market report, see&nbsp;.IS



For RUSSIAN market report, see&nbsp;RU/RUB



(Reporting by Amruta Khandekar;Editing by Bernadette Baum)

Stocks fall for third day on China deflation fears, FX subdued

<figure class="wp-block-image size-large"><img decoding="async" loading="lazy" width="820" height="533" src="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-820x533.jpg" alt="" class="wp-image-418142" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-820x533.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-300x195.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-138x90.jpg 138w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-768x499.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-1536x999.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2022/06/5BJKLQNY65JNLJAAC37N24TIIM-scaled.jpg 2048w" sizes="(max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">FILE PHOTO: Bank notes of different currencies, including Euro, U.S. Dollar, Turkish Lira or Brazilian Reais, are photographed in Frankfurt, Germany, in this illustration picture taken May 7, 2017. REUTERS/Kai Pfaffenbach/Illustration</figcaption></figure>



May 10 (Reuters)&nbsp;&#8211;&nbsp;Emerging market currencies were subdued on Wednesday, with investors cautious ahead of U.S. consumer price data that could pare bets that Federal Reserve rates are near a peak while the Hungarian forint rose after inflation slowed for a third month.



The MSCI&#8217;s index for emerging market currencies&nbsp;.MIEM00000CUS&nbsp;was flat at 0825 GMT.



April U.S. consumer price data is due at 1230 GMT and economists expect the headline CPI to hold steady at an annual 5% and core CPI to moderate very slightly to 5.5%, though anything stickier could confound bets of interest rates cuts in the world&#8217;s largest economy.



&#8220;A softer-than-expected CPI report should further fuel the Fed rate cut expectations into this fall and relieve a part of the positive pressure on U.S. yields, whereas a stronger-than-expected read will hardly boost any hawkish bets at this stage,&#8221; said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.



Meanwhile, Hungary&#8217;s forint&nbsp;EURHUF=&nbsp;inched 0.2% up against the euro, leading gains among regional peers.



<a href="https://www.reutersconnect.com/all?search=all%3AL8N37728G&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Inflation in Hungary</a>&nbsp;slowed for a third straight month in April, with the headline rate falling a touch more than expected to 24.0%, potentially giving the central bank scope to pursue interest rate cuts.



The Polish zloty&nbsp;EURPLN=&nbsp;edged 0.1% higher against the euro, as investors awaited its interest rate decision later in the day.



Pakistan&#8217;s rupee&nbsp;PKR=&nbsp;fell to 288.5 per dollar to hit a record low amid&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N37707K&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">political turmoil</a>&nbsp;a day after former prime minister Imran Khan was arrested by the anti-corruption agency in Islamabad.



<a href="https://www.reutersconnect.com/all?search=all%3AL1N3770KT&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Russia&#8217;s rouble</a>RUBUTSTN=MCX&nbsp;strengthened to 77.2050 against the dollar, pulling further away from one-year lows hit at the end of April.



In&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL1N3770FY&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">Egypt, consumer inflation</a>&nbsp;in April slowed to 30.6% from 32.7% in March, lower than analysts had expected.



South Africa&#8217;s rand shed 0.5% against the greenback, extending sharp losses from the previous session. South Africa&#8217;s&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL8N3772PX&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">international bonds</a>&nbsp;also came under fresh pressure as fears grew of scheduled blackouts known as loadshedding worsening over winter.



The Turkish lira&nbsp;TRYTOM=D3&nbsp;was unchanged after data showed&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AAPN0W4HTK&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">industrial production</a>&nbsp;climbed 5.5% month-on-month in March and the&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AAPN0W4HQS&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">unemployment rate</a>&nbsp;stood at 10%, unchanged from a month earlier.



Emerging market stocks&nbsp;.MSCIEF&nbsp;fell 0.4%, with China and Hong Kong stocks extending losses after disappointing Chinese April trade data re-ignited fears of slowdown in the world&#8217;s second-largest economy.



People in China splashed out on dining, travel and luxury goods after emerging from three years of pandemic restrictions but are still not spending freely on routine consumer items, if&nbsp;<a href="https://www.reutersconnect.com/all?search=all%3AL4N3750CO&amp;linkedFromStory=true" target="_blank" rel="noreferrer noopener">first quarter corporate results</a>&nbsp;are an indication.



(Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Jacqueline Wong)

Bank notes of different currencies are photographed in Frankfurt, Germany, in this illustration picture

Currencies muted, shares slip with focus on US inflation

<figure class="wp-block-image size-full"><img decoding="async" loading="lazy" width="740" height="416" src="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil.jpeg" alt="" class="wp-image-413529" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil.jpeg 740w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2021/11/oil-160x90.jpeg 160w" sizes="(max-width: 740px) 100vw, 740px" /></figure>



HARARE, May 8 (Reuters) &#8211; Australia-listed Invictus Energy&nbsp;<a href="https://www.reuters.com/companies/IVZ.AX" target="_blank" rel="noreferrer noopener">(IVZ.AX)</a>&nbsp;on Monday confirmed the presence of light oil, gas condensate and helium at its Cabora Bassa project in Zimbabwe, sending its shares up 8.7%.



The company said that mud gas analysis from the Mukuyu-1 well drilled last year had proved the presence of hydrocarbons in multiple reservoir pay zones.



“Analysis shows the presence of light oil and rich natural gas condensate, with condensate gas ratios estimated at between 30 and 135 barrels per million cubic feet,&#8221; it said.



The analysis also confirmed the presence of helium gas in commercial concentrations comparable with global helium producing fields, the company added.



Helium is a key component in the manufacture of semiconductors, liquid crystal display (LCD) panels and fibre optic wire.



Invictus said it plans to drill a second well, Mukuyu-2, during the third quarter of this year.



“Success at Mukuyu-2 and confirmation of a significant discovery will further unlock the value of our material portfolio,&#8221; said Invictus Energy Managing Director Scott MacMillan.



Reporting by Nyasha Chingono Editing by Nelson Banya and David Goodman

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Currencies set for weekly drop, Turkey’s lira hovers near all-time low

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African Currencies Are Under Pressure Amid Higher-for-Longer US Interest Rates

Stocks fall for third day on China deflation fears, FX subdued

Currencies muted, shares slip with focus on US inflation

Invictus Energy confirms oil, gas and helium find in Zimbabwe

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Economy

What are governments doing to ease inflation pain?

World Bank lifts 2023 global growth forecasts, but cuts next year’s outlook

S&P sees weaker 2023 growth in key African economies as tailwinds fade

Musicians launch drive for more funding for arts in Africa

FX set for weekly losses, Turkey’s lira falls to record low against dollar

Stocks at one-month low; Turkey, South Africa rate decisions on tap

UN, Africa bank work to ease Russian grain, fertilizer exports -UN official

African GDP growth to edge up in 2023 despite South Africa slide -AfDB

EM stocks slip, Hungary’s forint weakens ahead of rate decision

Stocks gain on hopes of improved Sino-U.S. relations, FX muted

WTO chief pushes for reglobalized supply chains to cut down bottleneck risks

Currencies set for weekly drop, Turkey’s lira hovers near all-time low

Currencies hit 3-week low, Turkey post-election selloff resumes

African Currencies Are Under Pressure Amid Higher-for-Longer US Interest Rates

Stocks fall for third day on China deflation fears, FX subdued

Currencies muted, shares slip with focus on US inflation

Invictus Energy confirms oil, gas and helium find in Zimbabwe

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